Ingram Micro 2025 Q2 Earnings Mixed Performance as Net Income Hits Two-Year High

Ingram Micro (INGM) delivered a mixed performance in its fiscal 2025 Q2 earnings report, with revenue rising by 10.9% to $12.79 billion, surpassing its guidance range of $11.765–$12.165 billion. Despite this strong revenue growth, the company’s GAAP net income declined by 30.7% to $37.83 million, while EPS fell 36% to $0.16. However, management noted that the Q2 net income marked a record high in two years, reflecting resilience following a ransomware attack in July.

Revenue
Ingram Micro's total revenue surged 10.9% to $12.79 billion in fiscal 2025 Q2, compared to $11.54 billion in the same period the previous year. This robust growth was driven by sales across all four geographic regions and three primary business lines. The Asia-Pacific region contributed significantly to the increase, with a 16.2% rise in net sales to $3.5 billion, attributed to strong demand for client and endpoint solutions, particularly smartphones and consumer electronics. North America also showed notable growth, with a 13.7% increase in net sales to $5.0 billion, fueled by server and storage products and client solutions in the U.S. EMEA saw a 4.8% increase in net sales to $3.5 billion, driven by growth in client and endpoint solutions and advanced solutions. Latin America reported a modest 0.8% rise in net sales to $900 million, attributed to growth in smartphones, tablets, and cloud-based solutions.

Earnings/Net Income
Ingram Micro’s GAAP net income declined to $37.83 million in fiscal 2025 Q2, a 30.7% drop from $54.59 million in the previous year. Diluted EPS also decreased by 36% to $0.16, down from $0.25 in the prior year. However, the company’s non-GAAP net income rose to $142.33 million, or $0.61 per share, outperforming the previous year’s $120.43 million, or $0.54 per share. These results were achieved despite a decline in gross margins to 6.56% from 7.18% year-over-year, primarily due to a shift in sales mix toward lower-margin businesses. Despite the earnings decline, the company reported a record high in Q2 net income for the past two years, highlighting its operational resilience.

Price Action
The stock price of Ingram Micro has experienced mixed performance in the recent trading period. During the latest trading day, the stock climbed 3.46%, but it dropped 4.36% during the most recent full trading week and tumbled 8.40% month-to-date. This volatility reflects market sentiment in response to the earnings report and broader economic conditions.

Post Earnings Price Action Review
Following the earnings release, the stock’s price action has been characterized by significant volatility. A strategy of buying INGM after earnings beat expectations and selling after 30 days resulted in a -73.78% return, underperforming the benchmark by 159.97%. This strategy also had a maximum drawdown of 0% and a Sharpe ratio of -0.86, indicating high risk despite relatively low volatility of 27.55%. The mixed performance underscores the market's cautious stance towards Ingram Micro, influenced by the company's earnings results and broader market conditions.

CEO Commentary
Paul Bay, Chief Executive Officer, emphasized the company’s strong second-quarter results, noting net sales growth across all four geographic regions and three primary business lines. He highlighted the company’s resilience following a ransomware attack in early July, which had no impact on Q2 results, and credited the Xvantage digital experience platform for accelerating recovery and enhancing customer and partner service. Bay expressed confidence in the company’s agility and long-term strength, underscoring its commitment to innovation and operational efficiency.

Guidance
For fiscal third quarter 2025, Ingram Micro expects continued year-over-year top-line growth. The company provided non-GAAP diluted EPS guidance of $0.61 to $0.73, with an effective tax rate of approximately 30%. Net sales guidance is set between $11.875 billion and $12.375 billion, reflecting confidence in the company’s core business execution and market conditions.

Additional News
Ingram Micro announced several key developments in the past three weeks. The company completed an amendment to its term loan credit facility in June, reducing the interest rate by 50 basis points. Additionally, the divestiture of two non-core businesses is expected to be finalized in Q3 2025, aligning with the company’s strategic focus on core operations. The board also increased the quarterly dividend by 2.6% to $0.078 per share, payable on September 2, 2025, to stockholders of record as of August 19, 2025. These actions demonstrate Ingram Micro’s commitment to optimizing its capital structure and enhancing shareholder returns.